Ampco downcast despite 2Q gains

Ampco-Pittsburgh Corp. reported sharply higher second- quarter sales and profits but offered a gloomy outlook for the remainder of the year.

Ampco-Pittsburgh, a maker of metal products and air and liquid processing equipment, said Tuesday its sales for the quarter ended June 30 reached $53.6 million, an 18 percent improvement from $45.5 million a year ago.

The company earned $840,000, or 9 cents a share, more than double its profit of $391,000, or 4 cents a share, in the 2003 quarter.

Ampco-Pittsburgh said it had $223,000 in pre-tax legal costs during the second quarter related to asbestos-related lawsuits.

Also, margins in the Ampco-Pittsburgh's forged and cast metals segment were hurt by "unprecedented increases" in prices for scrap steel, alloys and natural gas. The company implemented price surcharges but said they wouldn't begin making back the higher costs until later this year. Demand has been weak in some markets, including construction and energy.

Ampco-Pittsburgh added its United Kingdom operations were hampered by operational problems that led to a loss, although the company didn't provide details.

Looking ahead, Ampco-Pittsburgh said it expected continued weakness across the balance of the 2004.